Skip header navigation
×

Article

Herding Dynamics in Exchange Groups: Evidence from Euronext

Citation
Economou F, Gavriilidis K, Goyal A & Kallinterakis V (2015) Herding Dynamics in Exchange Groups: Evidence from Euronext. Journal of International Financial Markets, Institutions and Money, 34, pp. 228-244. https://doi.org/10.1016/j.intfin.2014.11.013

Abstract
This study investigates in the context of the Euronext, whether joining an exchange group affects herding in the group's member-markets and if this effect persists when accounting for various domestic and international market states, the dynamics of the group's member-markets and the outbreak of financial crises. We find that herding is significant post-merger in all four constituent equity markets (Belgium, France, the Netherlands and Portugal) of the Euronext, with herding in Portugal being significant (yet less strong) pre-merger as well. These results are robust when controlling for various domestic and international market states, as well as the dynamics of the group's markets. The period following the outbreak of the euro-zone sovereign debt crisis produces significant herding in Belgium, the Netherlands and Portugal, with this herding being motivated by the dynamics of the group's two largest markets (France and the Netherlands).

Keywords
Herding; exchange groups; Euronext; euro-zone sovereign debt crisis; market states

Journal
Journal of International Financial Markets, Institutions and Money: Volume 34

StatusUnpublished
Author(s)Economou, Fotini; Gavriilidis, Konstantinos; Goyal, Abhinav; Kallinterakis, Vasileios
Publication date31/01/2015
Publication date online04/12/2014
URLhttp://hdl.handle.net/1893/21284
PublisherElsevier
ISSN1042-4431
Scroll back to the top